The U.S. Department of Housing and Urban Development recently announced the allocation of $382 million through the Housing Trust Fund to aid states in the production of affordable housing.
In order to increase and maintain the supply of decent, safe and affordable housing for low-income households, including families who are homeless, the Housing Trust Fund works with federal, state and local efforts, according to a May 3 news release.
“We’re proud to invest in states to create more affordable housing," HUD Secretary Marcia L. Fudge said in the release. "The Biden-Harris administration is committed to improving the nation’s housing affordability crisis and the Housing Trust Fund provides communities resources they need to produce more safe, sustainable and affordable housing."
The Housing Trust Fund is a program for states and territories based on formulas, the release reported. Each state is allotted a minimum of $3 million per year by law.
The funds are used for real property acquisition, site improvements and development hard costs, related soft costs, demolition, financing costs, relocation assistance, operating cost assistance for rental housing for up to 30% of each grant and reasonable administrative and planning costs, according to the release.
Fannie Mae and Freddie Mac have each contributed to the Housing Trust Fund's capitalization, the release said. The Federal Housing Finance Agency instructed these government-sponsored enterprises to start saving and transferring money to the Housing Trust Fund in December 2014.
By boosting the supply of and access to affordable housing for the country's most vulnerable populations, the Housing Trust Fund contributes to the expansion and strengthening of the federal safety net for those in need, the release reported. Extremely low-income families must be the sole beneficiaries of all contributions. With this targeting, it is ensured that aiding individuals with the greatest needs is the program's first priority.
With the allocated funds, states can now initiate plans to address the pressing housing needs of their respective populations, according to the release. The infusion of resources will pave the way for the creation of new affordable housing units and the revitalization of existing ones, ultimately working toward a more inclusive and equitable society.
